HDFC Bank taps law firms to review chair's abrupt exit
HDFC Bank taps law firms to review chair's abrupt exit
HDFC Bank engages three law firms to probe former chair Atanu Chakraborty's sudden resignation, examining governance records and whistle-blower complaints.
Mumbai: HDFC Bank has appointed domestic law firms Wadia Ghandy and Trilegal, along with a marquee US-based firm, to review the circumstances around former chairman Atanu Chakraborty's abrupt resignation. The scope includes a detailed examination of board meeting video recordings, minutes and agendas over the past two years, to determine whether any concerns about unethical practices or governance issues were raised during his tenure. It will also cover all whistle-blower letters received and escalated to the board during this period, to assess whether they raised substantive concerns and whether adequate action was taken in response.
The firms may interview current board members and senior management to determine whether anyone has information pertaining to unethical practices or governance issues at the bank. While the bank did not name the firms in its communications, it has asked them to submit their reports within a reasonable timeframe. The review was prompted by Chakraborty’s March 18 resignation. The bank stated that the appointment is a proactive measure to ensure an objective and fact-based assessment of the issues raised in the resignation letter, underscoring its commitment to high governance standards practiced over decades.
The development comes as regulators weigh in on governance expectations. SEBI has stressed that independent directors must back any serious allegations with proper evidence, warning that statements can significantly impact minority shareholders and market sentiment. The regulator’s emphasis on accountability, transparency, and responsible communication aligns with HDFC Bank’s decision to commission an external review. Bank officials have not publicly commented on the ongoing review, and law firms involved have not responded to requests for comment. The outcome could influence governance discussions for the lender and broader market observers.
